Capex at 14-year low amid political uncertainty ahead of Lok Sabha polls

Capex on new projects have halved in the March quarter y-o-y, though stalling and completion rates are better than before

Capital expenditure (capex) on new projects halved in the March quarter of FY2018-19, compared to the same period last year even as a new government is set to be elected at the Centre.

The total value of new projects for the last quarter was Rs 1.99 trillion, a decline of 54.4 per cent from the Rs 4.36 trillion spent during the corresponding period in the previous financial year, shows data from Centre for Monitoring Indian Economy (CMIE). Experts suggest that companies may have put their investment plans on hold ahead of the Lok Sabha elections 2019.

“In the first half